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The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the...

The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances:

Account Title Debits Credits
Cash 30,000
Accounts receivable 15,000
Equipment 20,000
Accumulated depreciation 6,000
Salaries payable 9,000
Common stock 40,500
Retained earnings 9,500
Total 65,000 65,000


The following is a summary of the transactions for the year:

  1. Service revenue, $100,000, of which $30,000 was on account and the balance was received in cash.
  2. Collected on accounts receivable, $27,300.
  3. Issued shares of common stock in exchange for $10,000 in cash.
  4. Paid salaries, $50,000 (of which $9,000 was for salaries payable at the end of the prior year).
  5. Paid miscellaneous expense for various items, $24,000.
  6. Purchased equipment for $15,000 in cash.
  7. Paid $2,500 in cash dividends to shareholders.
  1. Accrued salaries at year-end amounted to $1,000.
  2. Depreciation for the year on the equipment is $2,000.


Required:
2., 5, & 8. Prepare the summary, adjusting and closing entries for each of the transactions listed.
3. Post the transactions, adjusting and closing entries into the appropriate t-accounts.
4. Prepare an unadjusted trial balance.
6. Prepare an adjusted trial balance.
7-a. Prepare an income statement for 2021.
7-b. Prepare a balance sheet as of December 31, 2021.
9. Prepare a post-closing trial balance.

Please do requirement 9

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